👉 Are DeFi options on @Base outperforming Ethereum? ​ New quantitative research analyzes the price, implied volatility, and bearish/bullish strategies across Ethereum and Base revealing surprising insights: ​ 💧 ETH/USDC Pool Price • Minute-level analysis shows frequent dislocations between Base and Ethereum prices and deviations of up to $150 USDC in either direction. • These deviations were transient and often clustered during volatility events. • Likely drivers: sequencer delays, cross-chain latency, and JIT liquidity provisioning on Base. ⇒ These dislocations present short-lived arbitrage opportunities for high-frequency or cross-chain traders. ​ 🌡️ Implied Volatility (IV) Findings • Ethereum exhibited sharper IV spikes, particularly mid-2024 — consistent with deeper liquidity and speculative flows. • Base showed a slightly higher baseline IV but with smoother and more stable behavior. • The IV spread (Base – Ethereum) hovered slightly above zero on average, confirming Base tends to price in more persistent tail risk. • Large negative IV spreads (–100 IV pts) appeared during Ethereum IV surges—ideal windows for cross-chain vol trades. ​ ⇒ Trading edge: short Ethereum vol during spikes, long Base vol during low-IV periods. ​ 🧠 Strategy Results • Short Calls: Outperformed with +17.65% on Base and +14.76% on Ethereum; benefited from high IV and low realized volatility. • Long Calls: Underperformed with –18.06% on Base and –14.76% on Ethereum; premium drag outweighed limited upside. • Long Puts: Best-performing strategy; returned +17.58% on Ethereum vs. +13.42% on Base despite identical payoffs—reflecting Ethereum’s cheaper IV. • Short Puts: Negative returns (–17.58% ETH, –13.42% Base), but Base’s higher premia helped cushion downside. #DeFi #Ethereum #Base #QuantResearch #CryptoOptions #Panoptic #IV #Volatility #Arbitrage